OECD territorial reviews. Italy.

177 Pages·2001·9.528 MB·English

by  OECD

OECD
OCDE
PARIS
OECD
ECONOMIC
SURVEYS
ITALY
1995
OECD Economic Surveys
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OECD
ECONOMIC
SURVEYS
1994-1995
ITALY
ORGANISATION FOR ECONOMICCO-OPERATION AND DEVELOPMENT
ORGANISATION FOR ECONOMIC
CO-OPERATION AND DEVELOPMENT
PursuanttoArticle 1 ofthe Conventionsigned in Parison 14th
December 1960, andwhich cameintoforce on 30thSeptember 1961,
the Organisation for Economic Co-operation and Development
(OECD)shallpromotepoliciesdesigned:
to achieve the highest sustainable economic growth and
employment and a rising standard ofliving in Member
countries,whilemaintainingfinancialstability,andthusto
contributetothedevelopmentoftheworldeconomy;
to contribute to sound economic expansion in Member as
well as non-membercountries in theprocessofeconomic
development;and
to contribute to the expansion of world trade on a
multilateral, non-discriminatory basis in accordance with
internationalobligations.
The original Member countries of the OECD are Austria,
Belgium, Canada, Denmark, France, Germany, Greece, Iceland,
Ireland,Italy,Luxembourg,theNetherlands,Norway,Portugal,Spain,
Sweden, Switzerland, Turkey, the United Kingdom and the United
States. The following countries became Members subsequently
through accession at the dates indicated hereafter: Japan (28th April
1964), Finland (28th January 1969), Australia (7th June 1971), New
Zealand (29th May 1973) and Mexico (18th May 1994). The
Commission ofthe European Communities takes part in the work of
theOECD(Article 13oftheOECDConvention).
Publiéégalementenfrançais.
©OECD1995
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allorpartofthispublicationshouldbemadeto:
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Table of contents
Introduction 1
I. Recent developments 3
Climbing out of the recession 3
Labour market shake-out and counter-cyclical productivity gains 6
Reduced wage- and consumer-price inflation 12
Improvement in the external balance 16
II. Macroeconomic policies and prospects 26
Monetary policy 26
Fiscal policy 33
The outlook to 1996 48
III. Corporate governance in Italy 51
Introduction 51
Corporate governance and industrial structure 54
The structure of corporate finance 70
Economic implications of the governance structure 82
Policies affecting corporate governance 94
IV. Conclusions 102
Notes 110
Annexes
I. Technical notes 125
II. A synopsis of the Italian corporate governance system 126
III. Data sources on corporate ownership and control 131
IV. Supporting statistical material to Part III 133
V. Calendar of main economic events 138
Statistical annex and structural indicators 143
Boxes
Recent measures of labour market reform 11
Recent measures of structural reform 52
Tables
Text
1. Sectoral employment trends 7
2. Unemployment rate 8
3. Regional unemployment and participation rates 9
4. Sectoral productivity and unit labour costs 1 1
5. Consumer prices 15
6. Currency depreciation and foreign trade prices 18
7. Determinants of manufacturing trade volumes 21
8. Currency depreciation and manufacturing export performance 21
9. Geographical composition of foreign trade 23
10. Current account of the balance of payments 24
11. Net capital movements 25
12. Money and credit aggregates 31
13. Public sector budget deficits 34
14. General government income statement 36
15. Estimated net public pension liabilities 41
16. Structure of total public debt 43
17. Financing of public sector borrowing requirements, 1988-1993 44
18. Medium-term targets 46
19. Short-term projections 49
20. Summary features of corporate governance and industrial structure
in selected OECD countries 55
21. Distribution of manufacturing firms by size in selected
OECD countries 57
22. Ownership of listed firms 59
23. Ownership concentration in non-financial corporations 61
24. Shares held by small shareholders by sector 61
25. Control models in manufacturing firms 62
26. Incidence of groups as a control model by sector 68
27. Leverage ratios of non-financial firms 71
28. The banking sector 73
29. Regulations governing the ownership and control of non-financial
firms by financial institutions 74
30. Bank lending to non-financial enterprises 76
31. Stock market statistics in 1993 81
32. Supplier-assembler relationships in the automobile industry 86
33. Human resources management 88
34. Basic indicators of innovation activity 90
35. Foreign direct investment flows in major OECD countries 94
36. Privatisations in Italy, 1992-1994 97
37. The three banking privatisations 98
38. Timetable of planned privatisations 99
Annexes
Al. The 20 largest domestic economic groups in Italy (1992) 134
A2. General governance structure of companies in major
OECD countries 136
Statistical annex
A. Selected background statistics 144
B. Expenditure on gross domestic product, current prices 145
C. Expenditure on gross domestic product, constant 1985 prices 146
D. Gross domestic product, by kind of activity 147
E. Household appropriation account 148
F. General government account 149
G. Prices and wages 150
H. Employment indicators 151
I. Money and credit 152
J. Foreign trade by main commodity groups 154
K. Geographical breakdown of foreign trade 155
L. Balance of payments 156
M. Public sector 157
N. Financial markets 158
O. Labour market indicators 159
P. Production structure and performance indicators 160
Diagrams
Text
1. Contributions to GDP growth 4
2. Business indicators 5
3. Labour productivity growth: a cyclical comparison 10
4. Sectoral wage developments 13
5. Rate of return on capital and real interest rate 14
6. Producer and consumer prices 15
7. Current account of the balance of payments 16
8. Nominal and real exchange rates 17
9. Exchange rate and external prices 19
10. Export performance and import penetration 20
11. External indicators 22
12. Interest rates 28
13. Exchange rate and interest rate differentials 30
14. State sector deficit: targets and outturn 34
15. Fiscal indicators 35
16. State budget: proposed fiscal adjustments 38
17. Average maturity of public debt 45
18. Sectoral structure of production and exports in major
OECD countries 58
19. Majority stakes as a percentage of total listed stocks 60
20. Diffusion of groups among manufacturing firms 63
21. Size distribution of groups in Italy and France 64
22. Size distribution of firms by number of employees 65
23. The typical Italian group: Fiat 66
24. Corporate finance structure, 1989-1992 70
25. Corporate debt structure, 1989-1992 72
26. The role of Mediobanca 78
27. Real after-tax cost of funds 84
28. Structure of management compensation 89
29. R&D structure in selected OECD countries 91
30. R&D spending by industry leaders of selected OECD countries,
1993-1994 92
Annex
Al. FDI by sector in percentage of total 135
BASICSTATISTICS OFITALY
THELAND
Area 301.3 Inhabitantsinmajorcities 1.1.90,
Agriculturalarea(1000sq.km), 1982 236.3 thousands:
Rome 2804
Milan 1449
Naples 1 204
Turin 1003
THEPEOPLE
Population,1.1.93,thousands 56960 Thousands
Numberofinhabitantspersq.km 189 Labourforce,1993 23138
Netnaturalincreaseaverage(1988-92,thousands) 29 Employment,1993 20244
Netrateper1000inhabitants(1988-92) 0.6 Inagriculture 1508
Inindustry 6737
Inservices 11999
PRODUCTION
Grossdomesticproduct, 1993 Originofgrossdomesticproductin1993
(trillionoflira) 1560 atmarketprices,percentoftotal
GDPperhead(1993US$) 17423 Agriculture 4.1
Grossfixedcapitalformation Industry 29.2
PercentofGDPin 1993 17.1 Construction 5.7
Pcrhcadinl993(USS) 2977 Other 61.0
THEPUBLICSECTOR
Publicconsumptionin1993 Growthfinancialliabilitiesin1993
(percentageofGDP) 17.9 (percentageofGDP) 119.4
Currentrevenueofgeneralgovernmentin1993 Generalgovernmentinvestmentin 1993
(percentageofGDP) 46.8 (percentageoftotalinvestment) 15.5
FOREIGNTRADE
Exportsofgoodsandservicesas Importsofgoodsandservicesasa
percentageofGDP,1993 21.4 percentageofGDP,1993 18.6
Majorexportcategories,asapercentage Mainimportcategories,asapercentage
oftotalexports,1992(S1TC) oftotalimports, 1992(SITC)
Machinery(71 to77) 29.2 Foodstuffs(0) 8.1
Fabricandtextilegoods(65) 5.3 Machinery(71 to77) 20.9
Chemicalproducts(5) 7.9 Metal,oresandscrap(67+68) 8.5
Automobilesandparts(78+79) 4.4 Mineralfuels(3) 10.7
Mineralfuels(3) 2.1 Chemicalproducts(5) 12.5
THECURRENCY
Monetaryunit:Lira CurrencyunitsperUS$,
averageofdailyfigures:
Year1993 1572
October1994 1549
Note: AninternationalcomparisonofcertainbasicstatisticsisgiveninanAnnextable.
ThisSurvey isbasedon theSecretariat'sstudyprepared
for the annual review ofItaly by the Economic and
DevelopmentReview Committeeon 10th October1994.
After revisions in the light ofdiscussions during the
review, final approval ofthe Surveyforpublication was
given bythe Committeeon 18thNovember1994.
ThepreviousSurveyofItalywasissuedinJanuary 1994.